TNS Media Intelligence
Return To Previous Page |
 
  Contact:
Matt Biscuiti
Golin/Harris International
(212) 373-6044
mbiscuiti@golinharris.com
News
 
March 29, 2000
 
1999 Ad Spending: GM, Cable Networks and the Internet are the Winners
 
Buoyed by a strong economy, advertisers increased their media expenditures by 10.3% in 1999 over 1998's spending levels — up to $87.5 billion from $79.3 billion. General Motors led the way among parent companies spending $2.876 billion dollars (a 35.6% increase over 1998) and McDonald's ranked as the top brand in ad spending with $623.5 million (a 9.5% increase). Among the media, cable networks were the biggest beneficiary enjoying an 23.1%1 increase in their piece of the pie. Internet companies, meanwhile, increased their traditional media ad expenditures by 389%. The largest investment for Internet companies was seen in magazines, but Network Television and the Cable Networks appear to be closing the gap with greater percentage increases.

The Internet advertising sector, tracked by CMR's division, CMRinteractive, saw explosive growth too. Overall Internet advertising expenditures increased 85.9% jumping from $1.027 billion to $1.910 billion. More significantly, Internet ad spending crossed a milestone — 2.1% of total ad spending. While there is little surprise that e-commerce led the growth, the retail category increased its Internet advertising dollars by 153% — the largest of the major categories.

This information was issued today by Competitive Media Reporting (CMR), the nation's leading tracker of advertising intelligence. The information reflects advertising dollars spent in television, newspapers, magazines, radio and outdoor.

Among the Industry Groups, the automotive sector (spending $10.953 billion — a 13.2% increase over 1998) bested retail ($9.043 billion — a 15.9% increase). But for overall growth, the financial sector enjoyed a 23.5% increase driven, in large measure, by the online brokers. The telecommunications sector saw a 21.7% increase thanks, in large part, to the "10-10" dial-around numbers.

Automotive advertising also led the way among the major categories with expenditures from Factories and Dealers coming in first and second respectively (Factories: $8.304 million, Dealers: $4,364 million). Home & Building Retailers ($3.876 million), Telephone Companies ($3.695 million) and Financial Services ($3.683 million) rounded out the top five.

Individual leaders
Behind General Motors, Proctor & Gamble ranked as the second leading advertiser spending $1.685 billion (a -2.3% decline from 1998) and DaimlerChrysler ranked third spending $1.509 billion (a 9.0% increase from the previous year). Circuit City (spending $409.4 million — a 1.4% jump from 1998) replaced Burger King in the number two spot behind McDonalds among leading brands. Burger King (spending $400.4 million — a slip of -1.0%) dropped to third.

Competitive Media Reporting is the leading provider of strategic advertising intelligence, serving advertising agencies, advertisers, broadcasters and publishers. The company's tracking technologies collect occurrence and expenditure data, as well as the creative executions of over 900,000 brands across 15 media. CMR is headquartered in New York City and maintains sales locations in major markets throughout the United States. For further information, visit http://www.cmr.com.

Editor's Note:
Traditional media and Internet advertising expenditures by specific industries, categories, companies and brands are available by calling Daniel Prince & Associates — (212) 213-9060.

See the attached FY99 Industry Charts for select industry figures.

1 The percentage growth was calculated using only those cable networks measured by CMR in 1998.

The Top Advertisers and Brands

Rank Parent Company 1999 1998 % Change
1 General Motors Corporation 2,876,242,400 2,121,040,900 35.6
2 Proctor & Gamble Company 1,684,500,600 1,724,471,600 -2.3
3 DaimlerChrysler AG 1,509,488,900 1,385,351,800 9
4 Philip Morris Companies 1,357,514,700 1,264,592,100 7.3
5 Ford Motor Company 1,191,639,100 1,150,312,400 3.6
6 Time Warner 919,953,000 884,124,100 4.1
7 Johnson & Johnson 837,691,500 658,775,800 27.2
8 AT&T 824,503,300 631,465,300 30.6
9 MCI Worldcom 759,201,700 658,771,800 15.2
10 Walt Disney 745,058,500 810,000,600 -8
 
Rank Brand 1999 1998 % Change
1 McDonald's 623,470,500 569,192,900 9.5
2 Circuit City 409,397,300 403,590,400 1.4
3 Burger King 400,385,500 404,594,900 -1
4 Best Buy 250,522,200 203,995,800 22.8
5 Home Depot 236,098,500 215,241,100 9.7
6 Wendy's 217,149,200 187,264,400 16
7 Taco Bell 206,340,100 202,781,400 1.8
8 Sprint PCS Digital Service 186,057,700 77,557,400 139.9
9 10-10-220 180,488,100 60,572,800 198
10 ALLTEL Cellular Service 179,569,800 108,588,900 65.4
 

Across the Media

Rank Measured Media 1999 1998 % Change
1 Network Television 180,030,556,000 16,271,972,300 10.6
2 Newspaper 17,651,954,800 16,130,927,600 9.4
3 Spot Television 15,389,504,300 15,486,765,700 -0.6
4 Magazines 15,529,291,500 16,130,927,600 12.7
5 Cable Network Television 8,754,351,700 6,671,977,900 23.11
6 Syndicated Television 2,996,164,600 2,691,647,800 11.3
7 National Spot Radio 2,373,184,500 2,039,837,100 16.3
8 Outdoor 1,993,937,400 1,726,983,900 15.5
9 National Newspaper 3,205,608,600 2,658,232,300 20.6
10 Sunday Magazine 1,096,974,200 1,029,447,300 6.6
11 Network Radio2 NA NA NA
Total Spending 87,457,482,600 79,312,047,900 10.3
1 The percentage growth was calculated using only those cable networks measured by CMR in 1998.
2 CMR is currently reevaluating its Network Radio methodology.

Where Internet Companies spent their Off-line Dollars

Rank Measured Media 1999 1998 % Change
1 Magazines 687,273,200 153,645,700 347.3
2 Network Television 667,559,600 131,734,000 406.7
3 Cable Network Television 486,507,200 95,672,400 408.5
4 Spot Television 424,658,300 87,947,000 382.9
5 National Newspapers 300,055,000 61,110,400 391
6 National Spot Radio 295,745,700 47,291,100 525.4
7 Newspapers 133,918,400 27,228,800 391.8
8 Network Radio 72,898,200 26,864,600 171.4
9 Outdoor 44,886,300 5,980,200 650.6
10 Syndicated Television 36,129,500 7,864,700 359.4
11 Sunday Magazines 25,001,700 3,986,200 527.2
Total Spending 3,174,633,100 649,523,000 388.8
 

Automotive

Rank Parent Company 1999 1998 % Change
1 General Motors Corporation 2,627,969.20 1,921,531.50 36.8
2 DaimlerChrysler AG 1,495,119.80 1,373,463.50 8.9
3 Ford Motor Company 1,066,176.10 1,025,245.20 4
4 Toyota Motor Corporation 704,330.50 647,272.40 8.8
5 Honda Motor Co LTD 540,250.90 456,393.80 18.4
 
Rank Brand 1999 1998 % Change
1 Dodge Auto & Truck Var 132,604.80 44,778.20 196.1
2 Volkswagen Autos Jetta 117,699.00 16,314.70 621.4
3 Nissan Autos Maxima 116,003.60 17,523.00 562
4 Dodge Trucks Caravan 108,713.90 100,639.80 8
5 Jeep Grand Cherokee 107,787.90 136,365.40 -26.5
 

Direct-to-Consumer Prescription Drugs

Rank Parent Company 1999 1998 % Change
1 Glaxo-Wellcome PLC 223,379.40 166,975.50 33.8
2 Schering-Plough Corporation 189,155.10 209,074.50 -9.5
3 Pfizer Inc. 151,101.90 131,303.30 15.1
4 Merck & Co., Inc. 148,191.20 138,107.10 7.3
5 Astrazeneca PLC 139,636.40 99,910.00 39.8
 
Rank Brand 1999 1998 % Change
1 Claritin Allergy Rx 123,438.20 136,379.30 -9.5
2 Prilosec Heartburn Rx 79,435.80 49,736.10 59.7
3 Xenical Fat Blocker Rx 76,152.90 71.9 105,815
4 Propecia Hair Loss Rx 71,116.40 90,969.20 -21.8
5 Zyrtec Allergy Rx 57,068.40 75,235.00 -24.1
 

Financial

Rank Parent Company 1999 1998 % Change
1 American Express Co. 289,892.00 248,868.80 16.5
2 Visa USA, Inc. 268,267.70 225,903.40 18.8
3 Morgan Stanley DW 254,047.70 159,005.70 59.8
4 Charles Schwab Corp. 183,849.80 97,076.30 89.4
5 Mastercard Int'l. Inc. 176,075.10 155,567.60 13.2
 
Rank Brand 1999 1998 % Change
1 Visa Credit Card 143,777.20 134,134.20 7.2
2 E*Trade Brokerage Online 129,040.00 41,371.40 211.9
3 American Express Credit Card 122,376.70 131,554.70 -7
4 Mastercard Credit Card 112,687.80 70,514.40 59.8
5 Charles Schwab Consumer Svcs. 96,573.90 52,864.10 82.7
 

Telecommunications

Rank Parent Company 1999 1998 % Change
1 AT&T Corporation 739,987.10 547,075.70 35.3
2 MCI WorldCom 731,407.50 643,457.10 13.7
3 Sprint Corporation 451,574.00 355,529.70 27
4 Alltel 188,280.10 122,107.80 54.2
5 SBC Communications, Inc. 187,062.60 189,449.50 -1.3
 
Rank Brand 1999 1998 % Change
1 Sprint PCS Digital Service 186,057.70 77,557.40 139.9
2 10-10-220 Long Dist. Res. 180,488.10 60,572.80 198
3 Alltel Cellular Service 179,569.80 108,588.90 65.4
4 Sprint Long Distance Res. 173,076.00 171,337.30 1
5 1-800-Collect 163,821.40 147,433.90 11.1
 

Beer

Rank Parent Company 1999 1998 % Change
1 Anheuser-Busch Companies 321,426.50 309,452.10 3.9
2 Philip Morris Companies 166,678.90 214,550.00 -22.3
3 Adolph Coors Company 165,890.30 135,951.00 22
4 Heineken NV 42,232.20 18,328.80 130.4
5 Canandaigua Wine Co Inc 40,027.70 22,107.70 81.1
 
Rank Brand 1999 1998 % Change
1 Budweiser Beer 116,733.90 108,110.70 8
2 Bud Light Beer 103,326.70 125,474.80 -17.7
3 Coors Light Beer 94,226.40 76,355.70 23.4
4 Miller Lite Beer 82,715.40 95,161.90 -13.1
5 Heineken Beer 33,990.00 14,949.20 127.4
 

Carbonated Soft Drinks

Rank Parent Company 1999 1998 % Change
1 Coca-Cola Company 275,957.30 243,079.30 13.5
2 PepsiCo 209,509.00 202,503.20 3.5
3 Cadbury Schweppes 159,336.70 117,698.60 35.4
4 Coca-Cola Enterprises Inc 1,757.10 1,138.10 54.4
5 National Beverage Corp 1,204.60 539.9 123.1
 
Rank Brand 1999 1998 % Change
1 Coca-Cola Classic 139,702.40 115,461.50 21
2 Pepsi Cola 88,766.20 82,685.60 7.4
3 Dr. Pepper 70,726.30 55,247.20 28
4 Sprite 68,235.20 56,483.40 20.8
5 Pepsi One Diet 50,831.90 25,780.20 97.2
 

Restaurants

Rank Parent Company 1999 1998 % Change
1 McDonald's Corp. 626,238.00 570,948.80 9.7
2 Tricon Global (former Pepsico) 551,409.10 496,313.60 11.1
3 Diageo PLC 404,169.20 407,977.60 -0.9
4 Wendy's Int'l. Inc. 219,809.90 189,730.90 15.9
5 Darden Restaurants 136,883.70 139,447.50 -1.8
 
Rank Brand 1999 1998 % Change
1 McDonald's Restaurant 623,470.50 569,192.90 9.5
2 Burger King Restaurant 400,385.50 404,594.90 -1
3 Wendy's Restaurant 217,149.20 187,264.40 16
4 Taco Bell Restaurant 206,340.10 202,781.40 1.8
5 KFC Restaurant 168,795.00 161,623.00 4.4
 

Computer Companies

Rank Parent Company 1999 1998 % Change
1 Microsoft Corp 226,789.30 200,466.80 13.1
2 Gateway Inc 180,526.30 153,495.40 17.6
3 Intel Corp 155,807.80 104,326.50 49.3
4 Dell Computer Corp 155,194.60 93,260.30 66.4
5 Compaq Computer Corp 144,197.50 141,615.20 1.8
 
Rank Brand 1999 1998 % Change
1 Gateway Computer 100,552.80 67,987.20 47.9
2 Intel Computer Components 74,857.30 74,003.80 1.2
3 Dell Com Corp Comp Pdts D.R. 58,311.20 55,428.50 5.2
4 Microsoft Var Software 50,611.50 47,883.20 5.7
5 Compaq Computer Corp CP 37,154.90 22,541.10 64.8
 

Motion Pictures

Rank Movie Company 1999 1998 % Change
1 Walt Disney Company 404,165.40 470,539.40 -14.1
2 Time Warner Inc. 378,056.90 412,827.40 -8.4
3 Seagram Co Ltd 268,862.20 198,556.70 35.4
4 National Amusements Inc. 248,158.10 198,958.70 24.7
5 Sony Corp 239,782.50 215,944.70 11
 
Rank Movie Subsidiaries 1999 1998 % Change
1 Universal City Studios 268,862.20 198,556.70 35.4
2 Buena Vista Distribution Co 265,522.70 324,821.10 -18.3
3 Paramount Pictures Corp. 248,158.10 198,957.80 24.7
4 Warner Bros Inc. 236,020.70 268,227.00 -12
5 Sony Pictures Entertainment 195,859.10 106,113.90 84.6